The Research On The Improvement Of Compensation System In Hunan Rural Credit Cooperatives

In the knowledge economy age, human resource has been considered as the mostimportant resource within an organization, and compensation management representsthe core content of human resource management. Establishing a scientific andreasonable compensation system, improving its incentive function as well asstrengthening the competitive advantage of talents serve as a long-term undertakingfor corporate strategy. In the last several years, Hunan rural credit cooperatives havebeen undergoing active exploration of improving compensation management, only tofind that the operation of current compensation institution, which was set up afterseveral times of attempts, is not very optimistic. The low employee satisfaction, theineffective incentive system together with the problem of brain drain put the ruralcredit cooperatives at a relatively serious disadvantage, and thus optimization andimprovement in compensation system is in urgent need.This paper is based on the current situation mentioned above. It gives asystematic description of the historical background of the Hunan rural creditcooperatives, their development history, the current compensation system of them aswell as their performance assessment system.By adopting research methods likedocument inquiry, questionnaire and interview of key information, finding that theexisting problem of compensation system of the Hunan rural credit cooperatives is asfollows: lack of stratege, internal inequity, unsmooth promotion and so on. On thisbasis, the paper applies the related theories of modern salary design, following fourcharacteristic principles, which are total control, steady forwarding and basicallowance. On the basis of job analysis, job evaluation and salary location, inaccordance with the present situation of the Hunan rural credit cooperatives, the paperprovides an improved compensation system scheme for association at the county level,including regulation of total volume and increasing rate, salary structure of employeescontaining base pay and benefit salary, the different job coefficients on differentlevels, compensation management on top employees. The compensation system willimplement by accounting, auditing, supervision and perfection, the paper also offerscorresponding supporting measures such as propaganda, communication, scientificmerit evaluation mechanism, enterprise culture and so on.This scheme not only pays close attention to the problem of internal inequity and lack of incentive among employees, but also takes into consideration the presentsituation such as the two levels of legal person and its identity difference of Hunanrural credit cooperative. This is of great significance to the optimization of thecompensation management system of Hunan rural credit cooperatives.